should be zero...It will be 25% on a taxable acct unless you completed the appropriate form from your broker bringing it back down to 15%. The 25% is new for this year. Form will have to be completed every 3 years..........
The tax information on this website is not intended to provide legal and/or tax advice. Shareholders are encouraged to consult a professional advisor as to their particular tax consequences of holding Penn West Exploration shares.
Penn West Exploration is a “qualified foreign corporation” for the purposes of the reduced U.S. capital gains tax rate of 15% applicable to “qualified dividends” paid by U.S. domestic corporations and qualified foreign corporations. This reduced tax rate is subject to certain holding period requirements.
Penn West anticipates that dividends paid to shareholders who hold their shares in taxable U.S. accounts will be 100% taxable as qualified dividends and no portion of the dividend will be considered a non-taxable return of capital. Information relating to the taxable amount of dividends paid by Penn West will be communicated annually to U.S. shareholders on Form 1099-DIV (or similar substitute form) prepared by their broker (or other intermediary). Registered shareholders will receive their Form 1099-DIV directly from our transfer agent, Canadian Stock Transfer Company (“CST”). Penn West does not prepare or furnish shareholders with Form 1099-DIV.
For Penn West shares held within a qualified retirement plan such as an IRA or other U.S. tax-exempt account, no amount should be reported as taxable income and Canadian withholding tax (as described below) should no longer apply to dividend payments in respect of these shares.
Dividends paid to shareholders who hold Penn West shares in taxable U.S. accounts are subject to Canadian withholding tax at a rate of 25%. This rate is reduced to 15% under the Canada-U.S. Tax Treaty. To be eligible for the reduced withholding rate under the tax treaty, Canada Revenue Agency (“CRA”) now requires certain information be provided by the dividend recipient for any payments made after December 31, 2012.